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India Proposes Key Insolvency Law Amendments to Expedite Asset Resolutions

Government plans to remove CCI pre-approval requirement under Section 31(4) of the IBC, aiming to streamline processes and reduce delays.

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Overview

  • The Indian government is finalizing amendments to the Insolvency and Bankruptcy Code (IBC) to improve the efficiency of resolving stressed assets.
  • A key proposal involves removing the requirement for bidders to secure Competition Commission of India (CCI) approval before submitting resolution plans to the Committee of Creditors (CoC).
  • The amendment to Section 31(4) is intended to reduce regulatory bottlenecks, ease the workload on the CCI, and accelerate the resolution process.
  • These changes are expected to be introduced in the next parliamentary session, continuing the government's iterative efforts to refine the IBC framework.
  • Since its inception, the IBC has resolved 1,119 cases through the Corporate Insolvency Resolution Process (CIRP), recovering Rs 3.58 lakh crore for creditors as of December 2024.